Decision Support System

Description
This is Presentation highlighting decision support system.

Decision Support System and Executive Information System

Decision Process

Decision Support System
Solving semistructured and unstructured problem

Supports the human decision making process, rather than a means to replace it

DSS Goals and applications
Solving semistructured and unstructured decisions

Ability to adapt to changing needs
Ease of learning and use

Steps in solving a problem with a DSS

Define and formulate problem

Frame problem with DSS model

Use model to obtain results

Reformulate problem

Components of a DSS
The User Databases Planning languages Model base

Decision Support System
User input ‘What if’ questions

Computer Decision Making Programs

Data base

CRT Terminal

Historical and current status reports

Recommended courses of actions

Projected reports

Executive Information System
Designed to meet the special needs of top level managers

Executive Roles and Decision Making
Executive data bank Transaction processing data External environment Internal Projections Strategic planning Tactical planning Other areas of firm

External data

Fire fighting The organization

Executive Roles and Decision Making
Strategic planning Tactical Planning Fire Fighting

Control

Executive Decision Making Environment
Environmental information

Competitive information
Internal information

Characteristics of the type of information used by executive
Lack of structure
High degree of uncertainty Future orientation Informal sources Low level of detail

How EIS Differs From Traditional Systems
They are specially tailored to executive information needs They are able to access data about specific issues and problems as well as aggregate reports They provide extensive on-line analysis tools including trend analysis, exception reporting They can acees a broad range of internal and external data They are particularly easy to use – screen based They are directly by executives without assistance Information trend to be presented by pictorial or graphical means Information is presented in summary format The ability to manipulate data – “What if”

Purpose of EIS
Support management learning about an organization Timely access to information Ability to direct management attention to specific areas of the organization or specific business problems

Contents of EIS
EIS measures must be easy to understand and collect
Data should be collected naturally as part of the process of work Should be based on balanced view of organization’s objectives

Performance indicators in an EIS should reflect everyone’s contribution in a fair and consistent manner
Must encourage management and staff to share ownership of the organization’s objectives EIS measures must evolve to meet the changing needs of the organization



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